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Module 2: Financing the transition to Circular Economy
ADBI Circular Economy E-learning Course
About this module
The transition to a circular economy requires mobilizing resources and investments that support the adoption and upscale of ecological design, new technologies, and business models. Policy instruments, including economic instruments, play a crucial role in ensuring that the prices of goods and services reflect the economic damages associated with their production and use, thereby creating incentives for circularity. Such incentives can help create a more level playing field for innovative technologies and business models and play a key role in freeing and reallocating resources. Financial mechanisms are instrumental in scaling up funding in new business models to support the transition towards a circular economy. This module provides a framework for financing the transition toward a circular economy. It provides examples of financing mechanisms on government interventions and the role of private sector investments along the production and consumption value chain.
- • Understanding the role of economic instruments in the circular economy transition
• Understanding the policy incentives in creating a more level playing field for innovative technologies & biz models and freeing & reallocating resources for circularity transformation.
• Understanding the Financing mechanisms in scaling new business models (such as Product as a Service)
- 1. Which of the following is incorrect regarding Circular Economy Financing
a. Circular economy financing should only focus on recycling
b. Circular economy financing should support Reuse/share, repair, remanufacture, and recycling.
c. Circular economy financing should support investments in innovations and solutions to reduce or eliminate the extraction of natural resources
2. Which of the following is incorrect regarding policy instruments for circular economy
a. Continue subsidizing fossil fuels and products with lead, mercury, and other toxic compounds.
b. Battery manufacturers should be imposed the extended producer’s responsibility to recover the battery after use
c. Policy instruments could range from command and control, and economic instruments, to litigation-oriented
3. Building Blocks of Circular Economy include
a. Regulatory frameworks
b. Designing out waste
c. New Business model
d. Economic instruments & financing
e. All of the above